On Wednesday, the Securities and Exchange Commission (SEC) approved 3 to 2, the 458 page derivative use rules aimed at enhancing the regulatory framework for derivatives in the U.S. The Investment Company Act limits the ability of registered funds and business development companies to engage in transactions that involve potential future payment obligations, including obligations…
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US private equity firm Ares Management is currently in talks to buy scandal hit AMP, one of the largest finance groups in Australia. Market cap of AMP currently stands around 3.84BN USD, so no small potatoes for a potential suitor. AMP has been in the headlines since 2018 after an inquiry found it had mislead…
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Terry Smith, the enigmatic founder of Fundsmith and Manager of the ever popular Fundsmith Equity Fund has released a book. It consists of a series of essays written over the last 10 years. The book offers a deep dive into equity markets and valuation of their companies. This isn’t Smiths first rodeo however, publishing Accounting…
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Following further lockdowns, restrictions and unimpressive earnings from US tech giants, equity markets are on track for their worst week since March. As we move forward closer to year end, with increasing infections and more disruptions to businesses, its not a stretch to think that its going to be a long, hard winter for markets…
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On 22nd October 2020, the European Commission (EC) published the much anticipated consultation on the Alternative Investment Fund Managers Directive (AIFMD). Background Under AIFMD Article 69, the EC is required to conduct a review of the Directive. The review was required to be conducted by 22nd July 2017 and provide analysis of: The experience of…
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On 20th October 2020, the Central Bank of Ireland (CBI) published a letter to all UCITS management companies, authorised Alternative Investment Fund Managers (AIFMs), self-managed UCITS investment companies and internally managed Alternative Investment Funds which are authorised AIFMs. The letter sets out the CBI’s conclusions of its thematic inspection of compliance with its Fund Management Companies…
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Last month it was great to see a number of key liquidity developments finally enter into force, including: ESMA’s new guidelines on liquidity stress testing in UCITS and AIFs The FCA’s new rules for certain open-ended funds investing in inherently illiquid assets; and Article 37 MMF Reporting for both Q1 and Q2 Additionally, continuing the…
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Yesterday, the Financial Conduct Authority (FCA) fined a Hong Kong hedge fund just over £870,000 for failing to disclosure its net short position in Premier Oil Plc. This is the first time the FCA has taken enforcement action for a breach of the SSR. Asia Research and Capital Management Ltd (ARCM) agreed to resolve the…
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Cash as they say, is king. However this colloquialism has been the focus of debate over recent years. Increased ease of use of electronic and card based payment methods, couple with national level lockdowns appears to have hastened the decline of the use of cash by the public. In 2018 card based payments overtook cash…
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Its been reported via the FT that since January, 45% of UK based Active Fund Managers failed to beat the SP UK BMI Benchmark. Further research over a 10 year period show more than 66% failed to beat the benchmark. The traditional USP of active management is that despite higher fees they offer index busting…
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